Pass CFE-Fraud-Prevention-and-Deterrence Exam Guide

Saskia should provide a written communication about her findings to the relevant regulatory agencies.

Saskia should suspend the current audit engagement and begin a new audit focused on the internal control deficiencies.

Saskia should communicate the deficiencies in writing to those charged with governance.

Saskia should withdraw from the audit engagement immediately and issue a disclaimer on any prior work performed.

Po may include her opinion on the internal controls in her report to management only if management agrees to compensate her for the addition.

Po may include her opinion on the internal controls in her report to management because it is a technical matter.

Po may include her opinion on the internal controls in her report to management only if she amends her contract.

Po may not include her opinion on the internal controls in her report to management because that is not what she was hired to assess.

Employees should be made aware that management is watching for unexplained lifestyle and behavioral changes that might indicate fraudulent conduct.

An increase in employee wealth is always a sign of fraud that should be investigated.

Employees who steal do not commonly display lifestyle or behavioral warning signs of their misdeeds.

Managers should be instructed that it is a violation of employee privacy rights to monitor employees for behaviors that are indicative of fraud.

A requirement for corporations to establish a legal, regulatory, and institutional framework to support good governance practices

A call to support the equal treatment of all members of an organization's governing body

Guidance regarding appropriate board structures, responsibilities, and procedures

An examination of the importance of effectively designed and implemented internal control mechanisms within an organization